What you need2know:

• SPI futures up 19 points to 5546

• AUD at 94.55 US cents, 96.01 Japanese yen, 70.27 Euro cents and 55.52 British pence

• On Wall St, S&P 500 +0.2%, Dow -0.2%, Nasdaq +0.4%

• In Europe, Euro Stoxx 50 +0.1%, FTSE flat, CAC +0.2%, DAX +0.2%

• Spot gold fell 0.1% to $US1305.41 an ounce

• Brent oil adds 0.8% to $US108.13 per barrel

• Iron ore falls 1.2% to $US94.30 per metric tonne

What’s on today

Newcrest Mining releases its June-quarter production report. China
HSBC July Manufacturing PMI; RBNZ rate decision 7am AEST.
 

Stocks to watch

Concerns about slowing global growth are driving down the cost of borrowing to record lows and allowing Australia’s big banks to offer their lowest-ever fixed-rate home loans.

Infrastructure funds are gearing up for a sale of RBS’s investments in Sydney’s Royal North Shore Hospital following a $1.1 billion redevelopment.

Commonwealth Bank of Australia resources analyst Paul Hodsman has upgraded his recommendation on Perth-based nickel miner Western Areas to “buy” from “hold” following its strong quarterly production update.

CIMB said it was maintaining its “hold” rating on Macquarie Atlas Roads and raising its target price slightly to $3.12.

Currencies

 Reserve Bank of Australia deputy governor Philip Lowe said on Wednesday that the central bank has invested the equivalent of more than $1 billion in China’s currency as it encourages further opening of the financial system of the country's biggest trade partner.

The US dollar rose to eight-month highs against the euro as worries over tougher sanctions on Russia and their potential impact on fragile euro zone growth weighed on the single currency. The dollar could
only post modest gains, however, as attempts to push the euro below a key technical level at $US1.3450 failed.

Commodities

Zinc held near a three-year peak with supply set to tighten while aluminium dipped from multi-month highs but could turn higher again as inventories fall and demand rises. Still, some investors question whether zinc can maintain its strength.

Underlining expectations of improving copper supply, BHP Billiton said copper production increased to 1.7 million tonnes in fiscal 2014 and would rise to 1.8 million in the current year.

Freeport-McMoRan said it expects to “imminently” sign an agreement with Indonesia that would enable it to immediately resume copper concentrate exports which have been halted for more than six months.

United States

US stocks ended mostly higher on Wednesday, with the S&P 500 closing at a record on bullish results from Apple, though Boeing dragged on the Dow and conflicts in Ukraine and the Gaza Strip kept the broader market’s gains in check.

After the closing bell, Facebook said it grew its revenue 61 per cent in the second quarter, as the internet company benefited from strong demand for its mobile advertising business.

The International Monetary Fund said it expects the US economy to grow 1.7 per cent in 2014, even more slowly than it predicted a month ago, as weakness in the first quarter offsets an expected pick-up in the
second half of the year.

 Europe

Portugal’s stock market outperformed other European bourses on Wednesday, rallying after investors bought stakes in the country’s troubled lender Banco Espirito Santo.

Akzo Nobel rose 3.9 per cent after the chemicals group reported higher-than-expected second quarter earnings, and Akzo’s gains drove up shares in rival Bayer by 0.5 per cent.

Daimler produced a forecast-beating 12 per cent profit increase in the second quarter as its new Mercedes C-Class and E-Class cars helped to lift profit margins.

What happened yesterday

A strong quarterly production report from Australia’s biggest resources company pushed the sharemarket to a six-year high for the third day in a row.

The benchmark S&P/ASX 200 Index and the broader All Ordinaries Index each lifted 0.6 per cent on Wednesday to 5576.7 points and 5567 points, respectively, as inflation accelerated to its highest rate in
2½ years.